Goodyear posts sales gain, net loss for 1Q
Goodyear Tire & Rubber Co. posted net sales of $4.3 billion for the first quarter, a 21% increase from the same period in 2009. However, the company experienced a net loss of $47 million during 1Q 2010 vs. a $333 million loss in 1Q 2009.
First quarter sales reflected a $399 million impact of a 14% increase in tire unit volume due to improved global demand and growth in emerging markets, according to Goodyear officials.
"Sales also were positively impacted by $224 million in favorable foreign currency translation and by $125 million from higher sales in other tire-related businesses, primarily third party chemical sales in North America."
Other factors impacting first quarter results included charges of $99 million due to the devaluation of Venezuela's currency, costs related to a debt exchange offer of $5 million, gains of $8 million on asset sales, and others.
Goodyear's North American Tire segment achieved first quarter sales of nearly $1.8 billion vs. slightly more than $1.5 billion during the same period in 2009, "reflecting a 9% increase in tire unit volume and strong price/mix performance. Original equipment unit volume increased 45%, primarily in the consumer business due to higher vehicle production."
Meanwhile, replacement tire shipments were up slightly vs. IQ 2009 levels.
Howver, during the first quarter, Goodyear's North American Tire segment suffered a $14 million loss, which "was a $175 million improvement over the prior year."
Commenting on Goodyear's first quarter results, new CEO and President Richard Kramer says the Akron, Ohio-based company is beginning to see the benefits of "the strategic actions we took last year, including our commitment to launch innovative new products during an economic downturn."
These actions, he added, have positioned the company favorably "as the global economy begins its recovery."